Haruna Iddrisu, Minority Leader in Parliament, has questioned government’s decision to establish the Development Bank Ghana without seeking parliamentary approval.
According to him, banks such as the Agricultural Development Bank, set up in 1965 was established by an act of parliament. As such, government will need parliament to regulate the objective of the bank following the challenges the banking sector has been fraught with in recent years.
Additionally, he explained that the new bank’s functions, among others, must be regulated to ensure it does not engage in fiscal irresponsible acts.
“So, it is kind of defeatist for me, for the Ministry of Finance to want to establish this bank without recourse to parliament. But, will they come for parliament to provide funding for it? What will be the basis for parliament approving money for such a bank? Already it means the GHC300 million allocation is clearly illegal”.
Mr Haruna Iddrisu
His comments follow government’s decision not to seek parliamentary approval for the setting up of the Development Bank Ghana. However, Mr Iddrisu believes there is the need for parliamentary legislation before the bank is set up.
“We will not accept any public resources dedicated to that bank until it is supported by legislation. We in the minority are opposed to even the concept of a new national development bank”.
Mr Haruna Iddrisu
Appointments in new national development bank
Also, the minority leader also aired his concerns on the ongoing recruitment process to fill key positions at the bank. According to him, the processes leading to these recruitments has been shrouded in secrecy.
“You hear them saying that the determination of a board and the determination of a CEO was competitive; show me an advert inviting interested Ghanaian applicants of repute with enormous financial experience to lead this process, that has not happened”.
Mr Haruna Iddrisu
Nonetheless, Deputy Finance Minister, Dr John Kumah, reacting to the minority leader’s claims explained that, there are many ways to set up a bank for the country, which also includes using the parliamentary act. However, he noted that government has opted to use existing structures and laws to set up the bank.
“I think that what is going on is not illegal or contrary to our laws. The Minister of Finance is going through the existing banking regime, for instance securing licenses from Bank of Ghana, [and], operating and setting up structures within the banking governance regime that is already existing. it is not wholly true that you could do this by setting up legislation”.
Dr John Kumah
Funding for the new national bank
Following this, the deputy finance minister disclosed that government deems it necessary to use this approach to steer the bank away from politics.
He further revealed that it is also untrue that the Finance Minister has not been to parliament or furnished the members with the needed information about the bank.
According to him, captured in the 2021 budget is a seed fund of about GHC300 million made available for the bank. This, he explained, was highlighted as was other additional information captured in the 2021 mid-year budget review statement.
“I heard the minority leader say they will oppose any allocation of such an arrangement, but the finance minister and government has already spent monies on various banks without going for any act but still within the banking structures, the Bank of Ghana licensing regime and the banking act”.
Dr John Kumah
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